Why Does Gasoline Go Up When Oil Prices Go Down?
Isn’t always interesting how when the price of oil goes up, the price of gasoline moves in tandem almost immediately even though the gas you were buying was refined from oil purchased at a lower price? It’s even more aggravating when the price for a barrel of oil goes down; the cost of a gallon of gas only creeps down, reluctantly, slowly. But it is downright infuriating when the cost of a barrel of oil is going down, and the price of gasoline goes up. What’s with that? Well, here’s the answer. The Associated Press ran a story written by Chris Kahn and John Porretto about this very issue this past Monday. It was featured on AOL, so those of you read the article, accept my apologies. If you haven’t, you will learn something. The price of oil as reported on the business channels or in the newspaper is a benchmark price for West Texas Intermediate Crude. Believe it or not, it is actually drilled in Texas. I didn’t know that we had any oil left in Texas. Yippee-I-O Ki-a. This is an extreme...